Gold for December delivery on the Comex division of the New York Mercantile Exchange tacked on $3.10, or 0.25%, to $1,227.00 a troy ounce by 3:52AM ET (08:52GMT). It posted a small decline of less than 0.1% the day before.
Federal Reserve Chair Janet Yellen is due to testify on the economic outlook before the U.S. Congress Joint Economic Committee on Thursday at 10:00AM ET (15:00GMT).
Her comments will be monitored closely for any new insight on policy. The Fed left interest rates unchanged earlier this month, in a widely expected decision, but signaled it could hike in December as the economy gathers momentum and inflation picks up.
Investors are currently pricing an 86% chance of a rate hike at the Fed’s December 13-14 meeting, according to Investing.com’s Fed Rate Monitor Tool.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.
The greenback hovered close to the prior session’s 14-year high against a basket of major currencies early on Thursday, supported by expectations of higher interest rates in the coming months.